GBP/USD is trading around 1.3200 after Parliament voted to hold indicative votes on Wednesday. Ahead of these critical Brexit deliberations, the pound is looking for a new direction, and the upside may be more appealing.
The Technical Confluences Indicator shows that cable enjoys significant support at 1.3197where we see a dense cluster that consists of the Fibonacci 61.8% one-week, the Simple Moving Average 100-15m, the SMA 50-15m, the SMA 5-1one-day, the SMA 10-1h, the Bollinger Band 1h-Middle, and the BB one-day Middle.
Resistance is also close by, but it is somewhat weaker at 1.3216. This is the convergence of the Fibonacci 61.8% one-day, the previous 4h-high, the Fibonacci 23.6% one-month, and the SMA 10-one-day.
The initial upside target is 1.3245 which is the Pivot Point one-day Resistance 1 and the previous one-day high. Further up, 1.3290 is the PP one-day R2.
Looking down, significant support awaits at 1.3175 where we see the confluence of the BB 15min-Lower, the BB 1h-Lower, the BB 4h-Middle.
This is how it looks on the tool:
Confluence Detector
The Confluence Detector finds exciting opportunities using Technical Confluences. The TC is a tool to locate and point out those price levels where there is a congestion of indicators, moving averages, Fibonacci levels, Pivot Points, etc. Knowing where these congestion points are located is very useful for the trader, and can be used as a basis for different strategies.
This tool assigns a certain amount of “weight” to each indicator, and this “weight” can influence adjacents price levels. This means that one price level without any indicator or moving average but under the influence of two “strongly weighted” levels accumulate more resistance than their neighbors. In these cases, the tool signals resistance in apparently empty areas.
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